All Forum Posts by: Travis Watts

@Trey McGovern Funny story. I had this thought as well several years ago and had asked my CPA at that time if it were possible, the bottom line was no. I then switched CPA firms (for other reasons) and asked them the same question and the answer was yes. Funny how that works. Lesson learned = Find a CPA that specializes in what YOU do. I am a real estate investor and my previous CPA specialized in mid-high income W2 employees. It was a big mistake for me to use them for 10+ years. I was leaving thousands of tax benefits and deductions on the table because they didn't understand real estate or investing. I don't blame them, it was my fault for not finding the right match for me. 

I always find it interesting that some syndication groups will sit out of the game for years trying to time the markets and predict particular outcomes, while others continue doing deals through the cycle. Two quotes come to mind, "When your education increases, your risk decreases." - Robert Kiyosaki? "We learn from mistakes, but the mistakes don't have to be our own" - Warren Buffet? 

@Kayla V. Great post! Kayla - I am a multifamily apartment syndication investor (14+ and counting), I've learned a lot over the past few years. I am also in the Denver area, happy to help anytime. Good book = The Best Ever Apartment Syndication by Joe Fairless. As far as vetting a deal...So many topics to discuss but a few include:

1. Understanding the background and credentials on the team 
2. Getting references from current investors 
3. Researching the firm online and asking around on forums etc 
4. Meeting with the syndicator(s) in person (if possible) 
5. Seeing the track record 
6. Understanding the fee structure 
7. Happy to connect anytime. Best of luck!

@Josh Oaten Great post. I recently was part of (2) apartment syndications in Pheonix as a limited parter in the deals. These were value add C to B and we held them about 18 months and realized a 28% ROI on one and a 36% ROI on the other. The syndicate groups have since switched to focus on the Florida markets primarily. Best of luck!

@Kirk Frickey Hi Kirk, personally I started with SF homes, then transitioned into MF once I had built up a sizeable amount of capital. "Cash flow" didn't mean much to me when I had 20k to my name (ie 20k invested @ 10% = $2,000 yr or $166 a month). Big deal! For many years, I worked a full-time high paying job and did SF real estate deals while living on nearly nothing, as far as expenses go. At the point of gaining around 500k in investable cash....cash flow seemed much more intriguing (ie 500k invested @ 10%  = $50,000yr or $4,166 a month). At that point, I started investing in apartment syndications for cash flow and the rest is history. Food for thought. Best of luck! 

@Brian Toy Great post! Yes - there are many red flags. I have invested with 14+ different syndications. 

A few red flags include:

- Poor communication (there have been firms I've contacted, left voicemails and emails and it look them weeks to get back to me. Not a good sign for a future relationship)

- Can you speak directly with the GP or sponsor? (This may be a personal preference, but I find a lot of value and transparency in being able to speak directly to the one structuring and putting the deal together)

- Track Record (how many deals have gone full cycle? How many deals have been completed so far)

- References (can you speak to other investors in the deals) 

- Internet Search ( Did anything negative pop up online? If so, I usually bring it up to the GP directly and get their thoughts)

Hope that helps! 

@Dustin Hollar "Invest in yourself first and real estate second" (AKA books, meetups, online communities). That advice helped me prior to getting started.

@Jake Vanags I love the quote "Live where you want to live and invest where the numbers make sense". I have owned many homes in many places and I have also rented in many places. For example...I would consider buying a house in Tulsa, Oklahoma where I can get a 3/2 home for $250k and rent is $1,500 a month, but I might rent in Denver, CO where a 3/2 home sells for 750k and rent is $2,000. Best of luck! 

@Isaac Johnson Great post. I have nearly 80% of my entire investment portfolio in multifamily investments. Nice conclusion! The definition of intelligence is: "you agree with me" - Best of luck! 

@Curtis Reid As an added thought...have you read The Best Ever Apartment Syndication Book by Joe Fairless? There is a lot of great content in that book that can really cut the learning curve. Best of luck